Correlation Between Ascent Solar and ABCO Energy
Can any of the company-specific risk be diversified away by investing in both Ascent Solar and ABCO Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ascent Solar and ABCO Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascent Solar Technologies, and ABCO Energy, you can compare the effects of market volatilities on Ascent Solar and ABCO Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ascent Solar with a short position of ABCO Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascent Solar and ABCO Energy.
Diversification Opportunities for Ascent Solar and ABCO Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ascent and ABCO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ascent Solar Technologies, and ABCO Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABCO Energy and Ascent Solar is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ascent Solar Technologies, are associated (or correlated) with ABCO Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABCO Energy has no effect on the direction of Ascent Solar i.e., Ascent Solar and ABCO Energy go up and down completely randomly.
Pair Corralation between Ascent Solar and ABCO Energy
Given the investment horizon of 90 days Ascent Solar Technologies, is expected to under-perform the ABCO Energy. But the stock apears to be less risky and, when comparing its historical volatility, Ascent Solar Technologies, is 1.88 times less risky than ABCO Energy. The stock trades about -0.14 of its potential returns per unit of risk. The ABCO Energy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.10 in ABCO Energy on September 1, 2024 and sell it today you would lose (0.09) from holding ABCO Energy or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascent Solar Technologies, vs. ABCO Energy
Performance |
| Timeline |
| Ascent Solar Technol |
| ABCO Energy |
Ascent Solar and ABCO Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascent Solar and ABCO Energy
The main advantage of trading using opposite Ascent Solar and ABCO Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascent Solar position performs unexpectedly, ABCO Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ABCO Energy will offset losses from the drop in ABCO Energy's long position.| Ascent Solar vs. Asure Software | Ascent Solar vs. BBB Foods | Ascent Solar vs. Marfrig Global Foods | Ascent Solar vs. Playstudios |
| ABCO Energy vs. SinglePoint | ABCO Energy vs. VivoPower International PLC | ABCO Energy vs. SPI Energy Co | ABCO Energy vs. Solar Integrated Roofing |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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